Quick and Easy Valuation
An Estimate of Value (for larger companies using EBITDA for earnings metric)
Middle market businesses are typically priced on how much the company makes - it's earnings. The exact metric for earnings is EBITDA. Earnings Before Interest, Taxes, Depreciation and Amortization. Smaller companies with earnings less than $500K use an earnings metric called Seller's Discretionary Earnings (SDE) or just DE.
This module will walk through how to estimate your earnings, then ballpark a "rule-of-thumb" multiple you can use to estimate value.
|Quick and easy EBITDA template with adjustments. If you are not selling any time soon, you really don't need to identify expense accounts - just use this spreadsheet and estimate adjustments.||Excel||Download|
|Adjustment / addback template with expense categories.||Excel||Download|
|Simple addback example||Excel||Download|
|Quick Valuation Chart||Download|